Tenant's Prior Settlement Agreement Was Valid

Facts: Landlord cooperative corporation sued to evict tenant co-op shareholder for nonpayment of rent at least three times after tenant had withheld maintenance payments. Tenant claimed a breach of the warranty of habitability. Landlord and tenant signed a settlement agreement in court during the third nonpayment proceeding. Landlord gave tenant a $10,000 rent abatement, and tenant paid $16,000 in arrears. Tenant also agreed that, in the future, he would notify landlord in writing of any conditions he claimed caused a breach of the warranty of habitability before withholding payment. Five years later, landlord again sued tenant for nonpayment after tenant stopped paying rent. At the trial, tenant claimed a breach of the warranty of habitability. Landlord argued that tenant violated the prior settlement agreement and therefore couldn't raise that claim. Tenant said the prior agreement was invalid because it limited his rights under the law. The court ruled for landlord, and tenant appealed.

Court: Tenant loses. Both landlord and tenant were represented by attorneys in the prior court proceeding and held extensive negotiations to settle their many disputes. Tenant was an experienced real estate attorney and received the benefit of the prior agreement for five years before claiming it was invalid. Tenant also had a history of unjustified withholding of maintenance payments, causing landlord to start a number of court proceedings.

1050 Tenants Corp. v. Lapidus: NYLJ, 7/25/07, p. 34, col. 1 (App. T. 1 Dept.; McCooe, JP, Davis, Schoenfeld, JJ)